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Macro-economic adjustment socio-demographic change, and the evolution of income distribution in Côte d'Ivoire. A decomposition by microsimulation

Author

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  • Michael Grimm

    (University of Göttingen, Department of Economics, DIW and DIAL)

Abstract

This paper proposes a microeconomic decomposition of the evolution of income inequality in Cˆote d’Ivoire in the 1990s, allowing the in-depth analysis of simultaneous contributions of four types of phenomena to the evolution of the distribution of income: a change in the remuneration rates of observed and unobserved earnings determinants, a change in occupational preferences, and a change in the socio-demographic population structure. I show, for instance, that the increase in income inequality in Abidjan was the result of changes in the socio-demographic population structure and of changes in unobserved earnings determinants, even though higher activity, inflows in wage labour, a drop in returns to schooling, and the Ivorian/Non-Ivorian wage differential worked toward a more equal distribution. Concerning the link between growth and inequality, it is interesting to note that both negative income growth in Abidjan as well as positive income growth in rural Cˆote d’Ivoire, were connected with rising inequality. _________________________________ Cet article propose une d´ecomposition micro-économique de l’évolution de l’inégalité en Côte d’Ivoire dans les années 1990, en vue d’identifier les contributions simultanées de quatre types de phénomnes à la distribution du revenu : un changement des taux de rémunération des déterminants observés et nonobserv és du revenu, un changement du comportement de l’offre de travail et un changement de la structure socio-démographique de la population. Je montre, par exemple, que l’augmentation de l’inégalité du revenu Abidjan a été le résultat de changements dans la structure socio-démographique de la population et de variations des taux de rémunération des déterminants non-observés du revenu, et ce en dépit de taux d’activité et d’entrées dans le salariat plus forts, d’une baisse des rendements de l’éducation et du différentiel de salaire entre Ivoiriens et Non-Ivoiriens, qui ont joué à l’inverse en faveur de l’égalité des revenus. Concernant le lien entre croissance et inégalité, il est intéressant à noter que la croissance négative du revenu `a Abidjan comme la croissance positive dans le milieu rural ont été, tous les deux, accompagnées d’une hausse de l’inégalité.

Suggested Citation

  • Michael Grimm, 2001. "Macro-economic adjustment socio-demographic change, and the evolution of income distribution in Côte d'Ivoire. A decomposition by microsimulation," Working Papers DT/2001/12, DIAL (Développement, Institutions et Mondialisation).
  • Handle: RePEc:dia:wpaper:dt200112
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    References listed on IDEAS

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    More about this item

    Keywords

    Decomposition; earnings differentials; income distribution; microsimulation; occupational choices; poverty.;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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